function [diff, eq, v] = solve_b(D, v2, param, glob, options)
    
    param.D = D;
        
    c = [v2; v2];
    
    % First solve the incumbent's value function
    v     = solve_valfunc(c,glob.s,param,glob,options);
    v1    = v.v1;
    
    v2  = glob.PnK*v1;
    eq.v2 = v2;

%     v2                  = reshape(v2, glob.n(1), glob.n(2));
%     v2                  = griddedInterpolant(glob.B, glob.S,v2, 'linear');   
    
    %% find value of an entering firm

    ve.v1   = v1(glob.s(:,1) == 0, :); % assume that you start with zero employment
    eq.ve = ve;

    eq.eve  = sum(eq.ve.v1.*glob.a_stat_E');

    eve  = sum(eq.ve.v1.*glob.a_stat_E');
    diff = eve - param.ce;
    
    eq.eve = eve;
    
    
end